^ *5. 

T\  ^ 


NEW  ENGLAND  MILWAY  CAR  ACCOUNTING  ASSOCIATION. 


Boston,  Feb.  11,  1880. 

Pursuant  to  the  call  of  the  Executive  Committee  of  this 
Association,  the  members  convened,  at  one  o’clock  p.m.,  at  the 
Stockholders’  Room  of  the  Boston  and  Providence  Railroad 
Company,  the  following  Roads  being  represented  : Boston  and 
Albany;  Boston,  Barre,  & Gardner;  Boston  and  Maine;  Boston 
and  Providence;  Central  Vermont;  Cheshire;  Connecticut  River ; 
Connecticut  Western;  Eastern;  Fitchburg;  Housatonic;  Nashua 
and  Lowell;  New  York  and  New  England;  New  York,  New 
Haven,  and  Hartford ; Ogdensburg  and  Lake  Champlain ; Old 
Colony;  Pennsylvania;  Providence,  Warren,  and  Bristol ; Provi- 
dence and  Worcester  Red  Line  and  National  Despatch  Line. 

Mr.  A.  A.  Folsom  of  the  Boston  & Providence  R.R.  called  the 
meeting  to  order;  and,  on  motion  of  Mr.  Lansing  Millis  of 
the  Central  Vermont  R.R.,  Mr.  Folsom  was  elected  Chairman 
of  the  meeting,  Mr.  E.  C.  Robinson  of  the  New  York,  New 
Haven,  & Hartford  R.R.  being  elected  Secretary. 

Mr.  Folsom  of  the  Executive  Committee  stated  that  Auditors 
had  been  appointed  to  examine  the  accounts  of  the  Manager, 
and  that  they  had  made  a report,  which  he  would  present  for 
the  action  of  the  meeting.  This  report  is  as  follows  : — 

Messrs.  William  Bliss,  A.  A.  Folsom,  & G.  W.  Bentley, 

Executive  Committee  of  the  New  England  Railway  Car  Accounting  Association. 

Gentlemen, — At  your  request  the  undersigned  have  made  a thorough 
examination  of  the  books,  accounts,  disbursements,  and  management  of  the 
New  England  Railway  Car  Accounting  Association,  and  we  would  respect- 
fully report,  — 

First,  We  have  examined  the  books  and  accounts  of  the  Manager  from 
date  of  organization  (May  1,  1878)  to  Jan.  1,  1880,  and  the  balance-sheet  of 
the  last  date,  and  find  them  to  be  correct. 

Second,  We  have  examined  all  the  vouchers  paid,  and  find  them  to  be 
correct. 

Third,  Wh  find  the  cash  account  to  be  correct  up  to  the  date  of  examina- 
tion (Jan.  22,  1880). 

In  closing  this  report  your  Committee  beg  leave  to  bear  their  unanimous 


■£■2.  5 & 2. 


4 


testimony  to  the  economy  of  management,  efficiency  of  organization,  and 
the  practical  development  of  the  purpose  for  which  this  Association  was 
formed. 

Your  Committee  would  also  recommend  that  the  Manager  be  furnished 
with  a larger  working  capital  in  order  that  still  greater  economy  can  be 
attained,  and  that  the  Manager  may  be  relieved  from  most  vexatious  annoy- 
ances, arising  from  inability  to  promptly  liquidate  his  indebtedness. 

Respectfully  submitted. 

M.  E.  BARBER, 

Auditor,  B.  & A.  R.R. 

E.  C.  ROBINSON, 

Auditor,  N.  Y.,  N.  H.,  & H.  R.R. 

JAMES  DAILY, 

Auditor,  B.  & P.  R.  R. 

Auditing  Committee. 

Boston,  Jan.  22,  1880. 

Mr.  Folsom  stated  for  the  information  of  the  meeting  that 
the  recommendation  of  the  auditors  had  received  attention,  the 
working  capital  having  been  increased  $1,000  by  a loan  of 
$500  from  the  Boston  & Lowell  R.R.  Co.,  and  $500  from  the 
Boston  & Providence. 

The  report  was,  on  motion,  adopted,  and  placed  on  file. 

The  Manager,  Mr.  E.  B.  Hill,  being  called  upon,  read  the 
following 

MANAGER’S  REPORT. 

In  submitting  this  my  first  report  of  the  operations  of  this 
Bureau,  it  will  not,  perhaps,  be  amiss  for  me  to  refer  to  the 
circumstances  under  which  the  Association  generally  known  as 
the  “New  England  Railway  Car  Accounting  Association”  was 
organized. 

A few  years  ago,  when  freight-cars  were  seldom  if  ever 
allowed  to  go  off  their  own  line,  Car  Accounts  were  virtually 
unknown  ; but  as  the  interchange  of  cars  became  more  frequent, 
and  the  method  of  settling  for  their  use  on  foreign  roads  at  a 
certain  rate  per  mile  became  general,  every  Railroad  Company 
was  obliged  to  adopt  some  system  by  which  they  could  ascertain 
the  mileage  of  foreign  cars  on  their  line,  and  render  an  account 
of  the  same  to  the  owners.  This  at  first  was  an  easy  matter  to 
do ; bat  as  the  business  increased,  bringing  with  it  the  constant 
demand  for  information  as  to  the  disposition  of  foreign  cars,  it 
required  more  and  more  clerical  labor,  necessitating,  on  many 
roads,  the  formation  of  a new  department,  with  a number  of 
clerks  doing  nothing  else.  Many  different  devices  or  systems 


5 


had  been  introduced  to  make  the  work  more  effective,  to  enable 
a road  to  keep  better  track  of  its  cars,  and  to  have  some  check 
on  the  car-service. 

The  Western  roads  have  heretofore  been  very  far  in  advance 
of  the  Eastern  roads  — those  in  New  England,  especially  — in 
recognizing  the  importance  of  this  branch  of  the  railway  ser- 
vice, and  the  necessity  of  having  some  system  about  it.  A good 
system  of  accounts  in  any  department  involves  clerical  labor, 
and  clerical  labor  cannot  be  had  without  its  costing  money. 
Now,  every  railroad  official  knows,  that  if  he  can  demonstrate  to 
the  satisfaction  of  the  management  of  his  road  that  he  can 
increase  their  receipts,  or  decrease  their  expenses,  by  having  a 
good  system  of  accounts  in  any  department,  the  money  will  be 
forthcoming.  But  these  car-service  accounts  had  some  peculiar 
features.  A good  system  meant  additional  expense  incurred  for 
clerk-hire,  and  additional  expense  for  the  use  of  cars,  without 
apparently  any  corresponding  gain.  A road  with  the  most 
elaborate  system  of  car  accounts  that  could  be  devised  could 
not  increase  their  income  one  dollar.  It  might,  perhaps,  give 
them  a little  satisfaction  to  know  that  they  were  paying  every 
dollar  they  owed  for  the  use  of  cars  ; but  it  did  not  give  them 
the  greater  satisfaction  of  knowing  that  they  were  getting  all 
that  was  due  them:  so  most  of  them  thought  it  best  to  “ let  well 
enough  alone.” 

It  is  not  to  be  wondered  at,  that,  under  these  circumstances, 
we  found  it  a very  difficult  task  to  get  enough  roads  into  this 
arrangement  to  make  a test  practicable.  We  found  very  few  who 
objected  to  the  proposed  new  system  because  they  were  opposed 
to  it  in  principle ; but  they  thought  we  never  could  get  all  the 
New-England  roads,  or  even  a majority  of  them,  into  it;  and 
they  argued  that  it  was  not  for  their  interest  to  join  this  move- 
ment if  their  neighbors  kept  up  the  old  system,  and  made  up 
the  accounts  from  their  way-bills.  They  said  it  was  too  much 
of  a “ heads  }tou  win,  tails  I lose  ” arrangement ; and  they  always 
ended  the  argument  with  the  encouraging  remark,  “ You  get  all 
the  other  roads  in,  and  we  will  come  in.” 

I will  not  take  up  your  time  with  an  account  of  all  the  dis- 
couragements Wie  met  with.  Suffice  it  to  say,  that,  after  nearly 
seventeen  months’  hard  work,  we  succeeded  in  inducing  fifteen 
Companies  to  sign  an  agreement  to  pay  the  expense  of  trying 
the  thing  for  six  months,  a majority  of  the  other  Roads  agreeing 


6 


to  give  us  a duplicate  of  their  conductors’  reports  in  order  to 
make  the  test  practicable.  On  the  11th  of  April,  1878,  the 
representatives  of  the  fifteen  Roads  held  a meeting  here  in 
Boston,  and  it  was  decided  to  give  me  authority  to  go  ahead, 
and  put  the  plan  into  practical  operation.  In  two  weeks  from 
that  time,  we  had  found  suitable  offices,  had  desks  and  other 
furniture  built,  books  and  blanks  printed,  engaged  clerks,  and 
on  the  first  day  of  May  commenced  operations. 

The  six  months  given  me  to  demonstrate  the  practicability 
of  this  scheme  passed.  The  fifteen  Roads  with  which  we  started 
seemed  satisfied  ; others  came  in  to  try  it,  and  they  remained; 
and  to-day  we  have  in  the  Association  47  Roads  and  five  of  the 
freight  Lines.  From  the  day  we  commenced  operations  up  to 
the  present  time,  not  a single  road  has  withdrawn  from  the 
Association,  — a fact  which  will  require  no  comments,  as  it  tells 
its  own  story. 

I think  there  can  be  no  question  now  but  that  this  idea  of 
concentrating  the  work  of  a large  number  of  roads  at  one  cen- 
tral point  is,  at  least  so  far  as  New  England  is  concerned,  no* 
longer  an  experiment.  It  has  been  practically  demonstrated, 
and  has  been  proved  to  be  a success.  This  result  has  not  been 
attained,  however,  without  meeting  with  many  difficulties, 
which,  so  far  as  they  have  been  overcome,  it  is  not  necessary 
for  me  to  refer  to  here.  But  others  still  exist  which  have 
caused  me  much  embarrassment,  and  which  I have  been  unable 
to  surmount,  and  to  these  I beg  leave  to  call  your  attention. 

The  first  is  the  lack  of  a thorough  working  organization. 
During  the  twenty-one  months  that  this  Bureau  has  been  in 
operation,  I have  had  no  rules  or  regulations  to  guide  me,  by 
which  I could  hold  others.  I have  been  left  to  manage  the 
affairs  of  this  institution  as  my  judgment  dictated ; and,  as  I 
acted  without  any  specific  authority,  I have  often  been  greatly 
embarrassed  to  know  how  to  decide  the  many  questions  which 
were  constantly  presenting  themselves.  I have  done  the  best 
I could  under  the  circumstances;  but  whoever  has  the  manage- 
ment of  this  institution  in  future  should  be  relieved  from  the 
embarrassments  I have  been  subjected  to.  A proper  working 
organization  is  imperatively  necessary , if  this  work  is  to  continue ; 
and  I would  respectfully  ask  that  a committee  be  appointed  to 
present  for  adoption  at  this^meeting  a form  of  Constitution  and 
By-Laws  by  which  the  operations  of  this  institution  shall  be 
governed  in  future. 


7 


The  Apportionment  of  the  Expenses  is  a matter  which  I hope 
will  be  adjusted  at  this  meeting.  The  present  basis  of  settle- 
ment is  unsatisfactory  to  many  of  the  Roads  in  the  Association, 
and  is  certainly  not  an  equitable  one,  as  some  Roads  pay  more 
than  they  ought  to,  and  others  not  enough.  This  has  been  a 
great  source  of  embarrassment  to  me  ; has  kept  me  in  hot  water, 
so  to  speak,  ever  since  we  commenced  operations.  YVhen  the 
subject  is  brought  up,  I will  explain  in  detail  the  method  we 
have  of  dividing  the  expenses,  and  shall  be  prepared  to  answer 
any  questions  which  the  gentlemen  may  wish  to  ask. 

The  next  point  to  which  I wish  to  call  your  attention  is  the 
illegitimate  use  of  cars,  or,  in  other  words,  the  use  of  foreign 
cars  in  local  service.  Looking  over  our  books,  which  are  as 
good  as  a bird’s-ej^e  view  of  New  England,  we  see  to  what  ex- 
tent this  evil  is  practised  everywhere.  No  road  that  I know 
of  is  free  from  it.  But,  while  all  are  guilty,  some  are  more  guilty 
than  others.  To  a great  extent  this  can  be  prevented,  if  you 
teel  so  disposed,  by  attaching  a penalty  which  will  be  so  heavy 
♦that  no  road  will  be  tempted  to  use  a car  in  local  service, 
except  in  cases  of  great  emergency;  and  then  whoever  so  uses 
them  will  have  to  pay  roundly  for  the  privilege.  I have  here  a 
copy  of  an  agreement  which  was  entered  into  by  all  the  New- 
England  Roads  some  ten  years  ago.  It  was  intended  to  pre- 
vent these  same  abuses ; but  the  trouble  was,  it  could  not  be 
carried  out.  This  agreement  can  be  revived,  or  rather  one  of 
similar  intent  can  be  drawn  up,  and,  if  agreed  to  by  the  repre- 
sentatives of  the  New-England  Roads,  I will  guarantee  that  it 
can  be  carried  out.  My  idea  is,  that  a certain  rate  per  mile,  say 
five  cents,  be  charged  for  the  use  of  cars  in  local  service,  and 
perhaps  a certain  rate  per  diem  in  addition,  if,  after  having  been 
. so  used,  they  are  allowed  to  stand  at  a station  over  twenty-four 
hours.  By  means  of  the  records  we  have  in  this  office,  the  facts 
are  known*,  and  there  is  no  reason  why  such  an  arrangement  is 
not  practicable.  I leave  the  matter  for  your  consideration. 

Cars  are  often  hauled  empty  by  a wrong  route  towards  home, 
and,  being  stopped  at  some  junction  station  because  they  did 
not  come  that  way,  are  hauled  back,  and  finally  sent  home  by 
the  roundabout  way  they  came.  I think  in  doing  this  the  New- 
England  roads  often  make  a serious  mistake,  and  subject  them- 
selves to  a greater  expense  than  is  necessary.  Let  me  give  you 
an  illustration  of  this.  Northern  Railroad  Car  No.  133  was 


8 


loaded  from  some  point  on  its  own  road  to  Ansonia,  Conn.,  on 
the  New  Haven  and  Derby  Railroad.  It  was  delivered  to  tlie 
Concord  Railroad  at  Concord,  to  the  Worcester  and  Nashua  at 
Nashua,  to  the  Norwich  and  Worcester  at  Worcester,  to  the  New 
York  and  New  England  at  Putnam,  to  the  New  York,  New 
Haven,  and  Hartford  at  Hartford,  and  to  the  New  Haven  and 
Derby  Railroad  at  New  Haven.  On  its  return,  the  New  York,1 
New  Haven,  and  Hartford  Railroad  took  it  to  Springfield,  and 
delivered  it  to  the  Connecticut  River  Railroad,  and  it  went 
straight  north  until  the  Central  Vermont  stopped  it  at  Bellows 
Falls,  within  eighteen  miles  of  Claremont  Junction,  where  it 
would  have  been  home.  They  returned  it  to  Springfield,  where 
the  New  York,  New  Haven,  and  Hartford  refused  to  receive  it 
from  the  Connecticut  River  Railroad,  claiming  that  the  car  was 
originally  received  from  that  road.  They  finally  telegraphed 
me,  and  we  told  them  by  what  route  to  return  the  car,  and  it 
was  then  returned  as  it  came. 

Now  for  a few  figures.  When  that  car  stood  at  Bellows 
Falls,  it  was,  as  before  stated,  within  18  miles  of  home  by  the 
most  direct  route,  and  273  miles  by  the  way  it  came.  It  is  a 
very  low  estimate  to  say  that  it  would  cost  two  cents  a mile  to 
haul  that  car  back,  or  15.46  for  the  entire  distance,  to  which 
must  be  added  the  car-service  at  one  cent  per  mile,  making  the 
actual  cost  to  the  companies  that  hauled  that  car  back  not  less 
than  |8.19.  It  was  seventeen  days  after  the  car  arrived  at 
Bellows  Falls  before  it  was  delivered  to  the  Northern  Railroad 
at  Concord,  during  which  time  that  Company,  of  course, 
lost  the  use  of  the  car.  The  roads  that  hauled  the  car  back 
that  273  miles  could  have  well  afforded  to  pay  enough  to  make 
it  an  object  for  the  Central  Vermont  to  haul  it  from  Bellows 
Falls  to  Claremont  Junction ; and  the  Northern  Railroad  would, 
no  doubt,  gladly  have  waived  the  18  cents  car-service,  rather 
than  been  deprived  of  the  use  of  the  car  for  seventeen  days. 
The  car,  of  course,  should  have  been  returned  in  the  first  place 
by  the  route  it  came ; but  you  will  see  that  the  point  I wish  to 
make  is,  that  if,  as  often  is  the  case,  a car  gets  off  the  right 
route,  and  so  near  home  that  it  would  be  cheaper  to  pay  a fixed 
rate  per  mile  for  hauling  it  the  remaining  distance  than  to  haul 
it  by  the  roundabout  way  back,  this  rate  should  be  paid,  and 
assessed  on  the  roads  that  would  have  to  haul  it  back.  I do  not 
think  there  would  be  much  objection  to  this  arrangement  from 
any  quarter. 

f 


9 


There  is  another  point  in  connection  with  this  same  subject 
that  should  be  understood.  When  a car  is  hauled  empty  to  a 
junction  station  to  be  delivered  to  a connecting  road,  and  that 
road  refuses  to  receive  it,  and  the  car  is  hauled  back  to  be  sent 
by  some  other  route,  some  roads  do  not  allow  any  mileage,  and 
others  — a very  large  majority  of  the  roads  — do  allow  it. 
The  argument  of  the  Roads  that  do  not  pay  the  mileage  — that 
they  derive  no  revenue  from  the  use  of  the  car,  and  therefore 
ought  not  to  pay  mileage  on  it  — does  not  hold,  ^.o'od,  if  we  may 
judge  any  thing  from  the  fact  that  nine  out  of  ten  roads  here  in 
New  England  take  the  opposite  view,  and  always  allow  the 
mileage.  I would  respectfully  ask  for  an  expression  of  opinion 
on  this  point  from  the  members,  present. 

I have  been  asked  a number  of  times  during  the  past  year 
when  it  was  proposed  to  settle  the  balances  for  car-service 
through  this  Bureau.  It  would  add  greatly  to  the  usefulness 
of  this  institution  if  this  could  be  done  ; and  I would  be  glad 
to  see  it  organized  as  a Clearing-House  *at  as  early  a day  as  prac- 
ticable. The  settlements  can  be  made  without  the  slightest 
risk  of  loss,  and  it  will  certainly  be  a great  advantage  over  the 
present  system.  I would  respectfully  request  you  to  give  this 
matter  your  consideration,  and  would  be  glad  to  give  my  views 
more  fully,  if  called  upon. 

And  now,  gentlemen,  this  institution  has  been  in  existence  as 
an  experiment  twenty-one  months-.  It  is  for  you  to  say  whether 
the  work  shall  be  continued.  I believe  the  establishment  of 
this  Bureau  has  filled  a want  which  has  long  been  felt,-  and  that 
it  gives  you  the  only  system  by  which  the  work  can  be  done 
efficiently  and  economically  here  in  New  England.  Take  a 
railroad  map,  and  with  Boston  for  a centre  describe  a circle  of 
fifty  miles  radius.  There  are  20  separate  and  distinct  Railroad 
Companies,  over  1,400  miles  of  road,  and  600  stations  where 
cars  can  be  left  standing,  within  the  small  territory  described 
by  this  circle.  One  sees  at  once  how  difficult  it  is  to  keep  track 
of  cars  kept  constantly  moving  from  place  to  place  over  this 
network  of  railroads.  You  can  find  no  section  of  the  country 
which  presents  the  same  difficulties  we  have  here.  It  therefore 
requires  a system  especially  adapted  to  this  section  of  the 
country  to  work  to  advantage.  This  system  I believe  you  now 
have.  I believe  that  concentrating  the  work  as  much  as  possi- 
ble at  one  point  is  the  true  principle,  and  that  in  no  other  way 


10 


can  it  be  done  economically  and  efficiently.  I think  the  judg- 
ment of  those  who  advocated  this  movement  two  years  ago 
has  been  sustained,  and  that,  with  proper  management,  this 
institution  can  be  made  a source  of  information  to  the  New- 
England  Roads  which  will  be  invaluable  to  them.  Jt  is  not  per- 
fect yet  by  any  means.  It  needs  more  hearty  co-operation  on 
the  part  of  the  New- England  Roads  to  make  it  what  it  should 
be.  And,  too,  it  has  been  operated  too  economically.  I speak 
advisedly  when  I say  this.  In  trying  to  keep  the  expense 
down  to  the  lowest  possible  figure,  I have  had  to  employ  cheap 
help  and  not  enough  of  it  to  do  the  work  as  it  ought  to  be 
done.  It  should  have  a better  class  of  help,  and  perhaps  a 
better  Manager  ; but  in  principle  it  is  right. 

Respectfully  submitted. 

[Signed]  E.  B.  HILL,  Manager. 


The  many  points  covered  by  this  report  brought  out  con- 
siderable discussion  ; but  as  it  was  apparent,  that,  without  a 
prolonged  session,  it  would  be  impossible  to  give  them  the  con- 
sideration necessary  before  any  decided  action  could  be  taken, 
it  was,  on  motion, 

Resolved , That  the  Manager’s  Report  be  referred  to  a committee  of  three, 
to  be  appointed  at  the  will  of  the  meeting ; said  committee  to  take  into  con- 
sideration the  organization,  by-laws,  and  code  of  rales,  and  also  the  division 
of  expenses,  &c.,  for  the  future  government  of  the  Association,  and  to  report 
at  a future  meeting. 

The  Chairman,  declining  to  nominate  such  a committee,  at 
the  request  of  the  meeting  appointed  the  following  gentlemen 
to  act  as  a Nominating  Committee : — 

Mr.  J.  R.  Kendrick  of  the  Old  Colony  R.R. 

Mr.  James  T.  Furber  of  the  Boston  & Maine  R.R. 

Mr.  J.  E.  Bacon  of  the  Providence  & Worcester  R.R. 

Mr.  Arthur  Mills  of  the  Boston  & Albany  R.R. 

Mr.  E.  C.  Robinson  of  the  New  York,  New  Haven,  & Hartford  R.R. 

The  Committee  retired  for  consultation,  and,  on  returning, 
reported  the  names  of  the  following  gentlemen  to  act  as  com- 
mittee, as  provided  in  the  foregoing  resolution  : — 

Mr.  William  Bliss  of  the  Boston  & Albany  R.R. 

Mr.  F.  L.  Parker  of  the  Fitchburg  R.R. 

Mr.  E.  C.  Robinson  of  the  New  York,  New  Haven,  & Hartford  R.R. 


11 


The  report  was,  on  motion,  adopted  by  the  meeting ; and  the 
Manager  was  directed  to  notify  the  gentlemen  of  their  election. 

On  motion  of  Mr.  Lansing  Millis  of  the  Central  Vermont 
Railroad,  it  was  voted,  that,  when  this  meeting  adjourns,  it 
adjourn  to  meet  on  the  first  Wednesday  in  March  next,  at 
the  same  place,  at  eleven  o’clock  A.M. ; and  the  Manager  was 
directed  to  notify  all  members  of  such  meeting. 

Mr.  C.  S.  Gauntt  of  the  Pennsylvania  Railroad,  addressed 
the  meeting  on  the  subject  of  the  detention  of  their  cars  in  New 
England. 

On  motion  of  Mr.  Bacon  of  the  Providence  and  Worcester 
Railroad,  the  meeting  then  adjourned. 

E.  C.  ROBINSON,  A.  A.  FOLSOM, 

Secretary . Chairman . 


12 


Boston,  March  3,  1880. 

In  accordance  with  the  Resolution  passed  at  the  meeting  of 
Feb.  11th,  the  members  of  the  Association  met  at  the  Stock- 
holders’ Room  of  the  Boston  & Providence  R.R.  Co.  on  the 
above  date  at  11  o’clock  a.m. 

The  meeting  was  called  to  order  by  the  Manager  Mr.  E.  B. 
Hill.  Mr.  Wm.  Bliss  of  the  Boston  & Albany  R.R.  was  nom- 
inated for  Chairman  but  at  his  request  his  name  was  with- 
drawn and  on  motion  of  Mr.  Bliss,  Mr.  C.  S.  Turner  of  the 
Worcester  & Nashua  R.R.  was  elected  Chairman,  Mr.  E.  B.  Hill 
being  elected  Secretary. 

In  the  absence  of  the  minutes  of  the  last  meeting  Mr.  E.  C. 
Robinson,  Secretarj'  of  that  meeting,  made  a brief  statement 
of  the  action  then  taken. 

The  Committee  appointed  at  the  last  meeting,  to  take  into 
consideration  the  organization,  By  Laws,  and  Division  of  Ex- 
penses &c.,  &c.,  for  the  future  government  of  the  Association, 
being  called  upon,  Mr,  Bliss  of  the  Boston  & Albany  R.R.  read 
the  report  of  the  Committee. 

On  motion  of  Mr.  J.  W.  Hobart  of  the  Central  Vermont 
R.R.  the  report  was  received,  and  the  Secretary  was  requested 
to  read  the  form  of  Constitution  and  By  Laws  as  presented  in 
the  report,  so  that  action  could  be  taken  on  each  section  sepa- 
rately. 

The  Constitution  was  then  read  and  the  following  action 
taken. 

Voted , that  Article  1 be  amended  by  adding  in  conclusion  the  words  “ that 
may  so  desire  and  make  provision  for  the  same.” 

All  the  other  Articles  were  acted  upon  in  succession  and  on 
motion  approved  as  read. 

On  motion  of  Mr.  E.  C.  Robinson  of  the  N.Y.  N.H.  & H. 
R.R.  it  was  voted  to  have  the  By  Laws  read  and  approved  as 
a whole.  Being  read  by  the  Secretary  it  was  voted  to  insert 
the  words  “ and  complete  ” between  the  words  “ true  ” and 
“ inventory  ” in  Article  7.  With  this  exception  the  By-Laws 
as  presented  by  the  committee  were  approved. 


13 


On  motion  of  Mr.  E.  C.  Robinson  the  Constitution  and  By- 
Laws  as  amended  were  adopted. 

The  Constitution  and  By  Laws  as  adopted,  are  as  follows. 


CONSTITUTION. 

ARTICLE  I. 

This  Association  shall  be  entitled  the  “ Railway  Clearing-House  Associa- 
tion.” The  objects  of  its  organization  are, — 

To  keep  a record  of  the  movements  of  cars,  and  report  to  each  company 
the  mileage  thereof  on  the  line  of  all  other  roads  in  the  Association,  and  to 
provide  for  the  settlement  of  balances  between  the  roads  in  the  Association 
that  may  so  desire,  and  make  provision  for  the  same. 

ARTICLE  II. 

This  Association  shall  be  composed  of  Railroad  Companies  of  New  Eng- 
land, and  such  other  Companies  as  may  be  admitted  to  membership  by  the 
act  of  the  Board  of  Control,  and  which  subscribe  to  the  Articles  of  Associ- 
ation, and  contribute  to  the  expenses  thereof.  Each  company  shall  be 
represented  by  a duly  authorized  person. 

ARTICLE  III. 

Any  co-operative  Line,  Despatch  or  Car  Company,  not  owning  or  con- 
trolling a line  of  railway,  may  be  admitted  to  the  benefits  of  the  Clearing 
House  upon  the  payment  of  such  sums  as  may  be  agreed  upon  between  the 
Association  and  such  Lines  or  Companies. 

ARTICLE  IY. 

Section  1.  The  affairs  of  the  Association  shall  be  administered  by  a 
Board  of  Control,  of  thirteen  members,  who  shall  be  elected  every  year  at 
the  annual  meeting. 

They  shall  submit  at  each  annual  meeting  of  the  Association  a report  of 
the  operations  of  the  past  fiscal  year  and  of  its  financial  condition.  Any 
member  of  the  Board  of  Control  ceasing  to  be  the  representative  of  the 
Company  for  which  he  was  appointed  shall  cease  to  be  a member  of  said 
Board. 

Sect.  2.  The  said  Board  of  Control  shall  organize  by  the  election  of  a 
Chairman  selected  from  its  own  members,  and  a Secretary,  who  shall  not  be 
a member  of  said  Board;  and  the  Chairman  and  Secretary  shall  be  also 
President  and  Secretary  of  the  Association. 

A majority  of  the  members  of  said  Board  present  at  any  meeting  shall 
constitute  a quorum  for  the  transaction  of  business. 

Sect.  3.  The  said  Board  shall  have  power  to  fill  the  vacancies  in  its 
membership  occasioned  by  death,  resignation,  or  other  cause,  and  to  make 
By-Laws  for  its  own  government. 


14 


ARTICLE  V. 

Section  1.  The  animal  meeting  for  the  election  of  the  Board  of 
Control  and  the  transaction  of  such  business  as  may  properly  come  before 
the  Association  shall  be  held  on  the  last  Wednesday  in  October,  at  such  time 
and  place  as  may  be  designated  by  the  President,  and  the  fiscal  year  shall 
terminate  on  the  30th  of  September. 

Sect.  2.  Special  meetings  of  the  Association  shall  be  called  by  the 
President  at  the  request  of  two  members  of  the  Board  of  Control,  or  at  the 
written  request  of  not  less  than  five  members  of  the  Association.  The 
representatives  of  ten  Companies  shall  constitute  a quorum  at  all  meetings 
of  the  Association,  each  Company  to  be  entitled  to  one  vote  for  every  100,000 
miles,  or  major  part  thereof,  changed  against  it  during  the  preceding  year. 

ARTICLE  VI. 

Section  1.  It  shall  be  the  duty  of  the  President  to  preside  at  all  the 
meetings  of  the  Association.  In  his  absence,  a President  pro  tem.  may  be 
appointed;  and  the  presiding  officer  shall  appoint  all  special  committees, 
unless  otherwise  ordered  by  the  Association. 

Sect.  2.  The  Secretary  shall  keep  the  minutes  of  the  meetings  of  the 
Association,  and  shall  have  charge  of  the  records.  He  shall  notify  each 
Company  of  any  meeting  of  the  Association,  in  writing  or  by  printed  notice, 
at  least  ten  days  prior  to  said  meeting. 

ARTICLE  VII. 

Any  Company  may  withdraw  from  this  Association  by  giving  notice,  in 
writing,  to  the  Secretary,  provided  such  Company  shall  nevertheless  be  liable 
for  its  portion  of  the  expenses  for  the  fiscal  year  ending  Sept.  30,  next 
ensuing. 

ARTICLE  VIII. 

This  Constitution  may  be  altered  or  amended  by  a vote  of  two-thirds  of 
the  members  present  at  any  regular  or  special  meeting,  provided  due  notice 
of  said  alteration  or  amendment  shall  have  been  given  in  the  call  for  said 
meeting. 


15 


BY-LAWS. 

ARTICLE  I. 

The  General  Offices  of  this  Association  shall  be  located  at  Boston,  Mass. 
ARTICLE  II. 

The  Board  of  Control  shall,  at  the  first  meeting  after  election,  organize  by 
electing  from  their  own  members  a Chairman  and  Executive  Committee  of 
five  members,  and  a Secretary  who  shall  not  be  a member  of  said  Board, 
Seven  members  of  the  Board  of  Control  shall  constitute  a quorum  for  the 
transaction  of  business. 

ARTICLE  III. 

It  shall  be  the  duty  of  the  Board  of  Control,  at  its  first  meeting  after 
election,  to  appoint  three  Auditors,  whose  duty  it  shall  be  to  examine  the 
accounts  of  the  Manager  as  often  as  once  in  three  months. 

ARTICLE  IV. 

The  Chairman  of  the  Board  of  Control  shall  preside  at  all  the  meetings 
of  the  Board.  In  his  absence,  a chairman  pro  tern,  may  be  appointed. 

ARTICLE  V. 

The  Secretary  shall  have  charge  of  all  papers  and  documents  of  the 
Board.  He  shall  be  present  at  all  meetings,  take  minutes  of  all  proceedings, 
and  record  the  same  in  a suitable  book  kept  for  the  purpose.  He  shall  also 
notify  the  members  of  all  regular  and  special  meetings. 

ARTICLE  VI. 

The  Executive  Committee  shall  organize  by  the  election  of  a Chairman 
and  Secretary  (the  Secretary  not  to  be  a member  of  said  Committee) ; and  a 
majority  of  the  members  of  said  Committee  present  at  any  meeting  shall 
constitute  a quorum  for  the  transaction  of  business.  The  Executive  Com- 
mittee shall  provide  a suitable  place  for  the  offices  of  the  Association,  shall 
appoint  a Manager,  and  fix  his  salary,  and  have  a general  oversight  and 
control  over  the  management  of  the  Association.  Meetings  of  the  Executive 
Committee  may  be  called  at  any  time  by  the  Chairman,  and  it  shall  be  his 
duty  to  call  a special  meeting  whenever  requested  to  do  so  by  two  members 
of  the  Committee. 


ARTICLE  VII. 

The  Manager  shall  have  immediate  charge  of  the  work  for  which  this 
organization  is  formed.  He  shall  give  his  time  exclusively  to  this  service, 
and  shall  receive  therefor  such  salary  as  the  Executive  Committee  may  fix. 
The  office  is  one  of  trust  and  responsibility,  and  the  Manager  will  therefore 


16 


be  required  to  furnish  bonds  which  will  in  the  opinion  of  the  Executive 
Committee  be  sufficient  to  guarantee  the  faithful  performance  of  his  duty. 
He  will  have  authority  to  appoint  such  clerks  and  other  subordinates  as 
the  Executive  Committee  may  approve. 

At  each  meeting  of  the  Executive  Committee  the  Manager  shall  make  a 
report  of  the  receipts  and  disbursements  of  his  office  in  such  form  as  the 
Committee  may  direct. 

At  the  annual  meeting  in  October  the  Manager  shall  submit  a report  of 
the  financial  condition  of  the  Association,  and  a detailed  statement  of  the 
receipts  and  expenditures  of  the  past  fiscal  year  duly  audited.  He  shall 
also  present  a tabulated  statement  of  the  mileage  made  upon  each  road,  and 
the  proportion  of  the  expense  allotted  to  it. 

The  Manager  shall,  at  the  call  of  any  company  a member  of  this  Asso- 
ciation, give  a true  aud  complete  inventory  of  its  cars  and  the  place  where 
last  reported,  the  report  to  be  made  up  from  the  records  of  the  Association, 
and  not  to  be  furnished  oftenerthan  once  in  six  months. 

ARTICLE  YIII. 

No  alteration  in  or  amendment  to  these  By-Laws  shall  be  made  until 
presented  at  a stated  meeting,  and  adopted  at  a subsequent  meeting  by  a 
majority  of  the  whole  Board  of  Control. 


The  Committee  having  in  their  report  made  certain  recom- 
mendations, these  recommendations  were  then  acted  upon  sep- 
arately. The  first,  being  read  by  the  Secretary,  is  as  follows : 

In  regard  to  the  Division  of  the  Expenses,  your  Committee  recommend  that 
the  apportionment  be  made  on  the  basis  of  the  miles  run  by  all  the  cars  on 
each  road.  This  is  the  best  measure  of  the  work  done  on  each  line,  and 
seems  to  be  the  most  equitable  method  of  division. 

A discussion  in  which  nearly  all  the  members  present  took 
part  followed.  The  Manager  presented  a statement  showing 
how  the  new  basis  on  which  it  was  proposed  to  divide  the 
expenses  would  affect  the  sums  paid  by  each  Company  for 
the  month  of  January  1880.  This  statement  which  gave  a 
very  fair  idea  of  the  amounts  each  Road  would  be  called  upon 
to  pay,  met  with  a very  favorable  reception.  Mr.  Bliss  speak- 
ing for  the  Boston  & Albany  R.R.  Co.  said  that  he  thought 
the  amount  allotted  to  that  Co.  seemed  to  be  fair  and  just, 
although  it  increased  the  proportion  which  that  Co.  would 
have  to  pay  over  fifty  per  cent  and  that  he  was  satisfied  so  far 
as  that  Road  was  concerned  to  accept  the  new  basis  of  settle- 
ment. Other  members  spoke  in  a similar  strain  and  it  was 
finally  on  motion  voted  unanimously  to  adopt  the  recommen- 
dation of  the  Committee  as  read  by  the  Secretary. 


17 


Mr.  F.  L.  Parker  of  the  Fitchburg  R.R.  then  presented  the 
following  preamble  and  resolution. 

Whereas , It  being  necessary  for  the  purpose  of  fairly  apportioning  the 
Expenses  of  this  Association  between  the  different  Companies  parties  hereto, 
that  a uniforjp  system  of  reports  be  adopted, 

Resolved , that  on  and  after  April  1st  next  each  Railroad  Co.,  party  hereto 
shall  report  the  movement  of  its  own  cars  on  its  own  road  without  regard  to 
whether  in  business  of  a local  or  through  character  as  well  as  the  entire 
movement  of  all  cars  other  than  its  own. 

The  preamble  *and  resolution  was  read  by  the  Secretary  and 
unanimously  adopted. 

The  recommendation  of  the  Committee  on  the  subject  of  the 
settlement  of  balances  was  read  by  the  Secretary,  and  is  as 
follows : 

Your  Committee  are  not  prepared  to  recommend  the  settlement  of  cash 
balances  for  car-service  through  the  Clearing  House  at  present. 

There  seems  to  be  some  opposition  to  this  plan  on  the  part  of  some 
members  of  the  Association.  Your  Committee  are  inclined  to  favor  it,  still 
they  do  not  deem  it  advisable  to  make  this  a condition  of  membership. 
The  machinery  of  the  Bureau,  however,  is  so  perfected,  that  these  settle- 
ments can  be  made  through  the  Clearing  House,  and,  should  any  road  so 
desire,  arrangements  can  be  made  with  the  Manager. 

Inasmuch  as  these  points  are  covered  by  Article  1 of  the 
Constitution  no  further  action  was  taken. 

The  Secretary  then  read  the  recommendation  of  the  Com- 
mittee in  reference  to  preventing  the  use  of  foreign  Cars  in 
local  service,  which  is  as  follows : 

Your  Committee  would  recommend  that  some  action  be  taken  to  prevent 
the  use  of  cars  of  foreign  roads  in  local  service.  No  road  should  send  a 
foreign  car  beyond  the  point  to  which  it  is  originally  destined,  or  use  a car 
of  another  company  in  local  service,  except  in  a direction  towards  home. 
Some  penalty  should  be  exacted  from  the  companies  violating  this  principle. 
The  Manager  should,  at  all  events,  be  directed  to  report  such  violations  to 
the  company  owning  the  cars  (if  the  company  is  a member  of  this  Asso- 
ciation), for  it  to  take  such  action  as  it  may  deem  expedient. 

Considerable  discussion  followed,  nearly  all  the  members 
present  making  some  remarks  on  the  subject,  after  which,  the 
following  Resolution  was  offered  by  Mr.  Bliss,  and  unanimously 
adopted. 

Resolved,  that  no  Road  in  this  Association  should  send  a car  of  a foreign 
Road  beyond  the  point  to  which  it  was  originally  destined,  or  use  a Car  of 
another  Company  in  local  service  except  in  a direction  towards  home,  with- 


18 


out  the  consent  of  such  Company,  and  that  the  Manager  be  instructed  to 
notify  every  Company  (if  a member  of  this  Association)  of  the  misuse  of 
their  cars,  according  to  the  terms  of  this  resolution,  and  that  the  question 
of  penalty  be  deferred  until  the  annual  meeting. 

On  motion  of  Mr.  E.  C.  Robinson  it  was  voted  that  the  Con- 
stitution and  By  Laws  as  adopted  at  this  meeting  go  into  opera- 
tion at  once,  except  that  the  election  of  a Board  of  Control  be 
deferred  until  the  annual  meeting  in  October,  and  that  the 
present  Executive  Committee  be  continued  in  power  with  the 
authority  of  the  Board  of  Control,  until  the  annual  meeting. 

On  motion  of  Mr.  F.  S.  Stranalian  of  the  National  Despatch 
Line  it  was  voted  that  the  name  of  Mr.  J.  W.  Hobart  of  the 
Central  Vt.  R.R.,  be  added  to  the  Executive  Committee. 

Mr.  F.  L.  Parker  of  the  Fitchburg  R.R.  offered  the  follow- 
ing Resolution,  which  was  on  motion  adopted. 

Resolved  that  the  Manager  be  authorized  to  have  the  Constitution  and 
By  Laws  of  this  Association  printed  and  issued  in  a convenient  form,  and 
at  least  three  copies  sent  to  each  Co  , party  hereto,  — and  that  the  proceed- 
ings of  this  meeting,  and  the  meetings  of  the  Board  of  Control  or  Executive 
Committee,  be  so  published  and  distributed  as  soon  as  convenient  after  each 
meeting. 


Mr.  Robinson  of  the  N.  Y.  N.  H.  & IL,  made  some  remarks 
to  the  effect  that  the  Roads  in  this  Association  were  now  un- 
questionably making  an  accurate  return  for  the  use  of  foreign 
Cars,  that  every  New  England  Road  was  being  benefited  by  this 
organization,  and  that  the  Roads  in  New  England  which  were 
not  now  members  should  be  induced  to  join  the  Association 
and  that  each  member  ought  to  take  it  upon  himself,  to  bring 
the  matter  before  the  Manager  of  those  Roads,  ’and  endeavor  to 
gain  their  co-operation. 

Remarks  of  a similar  import  were  also  made  by  the  Chairman, 
by  Mr.  C.  E.  Paige  of  the  Nashua  & Lowell  and  others,  after 
which  the  meeting  adjourned. 

C.  S.  TURNER 

Chairman. 


E.  B.  HILL 

Secretary. 


19 


ROADS  AND  LINES  IN  THE  ASSOCIATION, 

March  1st,  1880. 


Bangor  & Piscataquis  R.R. 

Boston  & Albany  R.R. 

Boston  & Lowell  R.R. 

Boston  & Maine  R.R. 

Boston  & New  York  Air  Line  R.R. 
Boston  & Providence  R.R. 
Boston,  Barre  & Gardner  R.R. 
Boston,  Clint.  & Fitch.  & N.  B. 

(now  Nor.  Div.  O.  C.  R.R.) 
Central  Vermont  R.R. 

Cincinnati,  Hamilton  & Da}i;on 
R.R. 

Cheshire  R.R. 

Chicago,  Burlington  & Quincy  R.R. 
Cleveland,  Columbus,  Cincinnati, 
& Indianapolis  R’y. 

Concord  R.R. 

Connecticut  Central  R.R. 
Connecticut  River  R.R. 
Connecticut  Western  R.R. 
Detroit,  Grand  Haven  & Mil- 
waukee R’}\ 

Eastern  R.R. 

European  & North  American  R’y. 
Fitchburg  R.R. 

Grand  Trunk  R’y. 

Great  Western  R’y  of  Canada. 
Hartford,  Prov.  & Fishkill  R.R. 

(NowN.  Y.  & N.  E.) 
Housatonic  R.R. 

Knox  & Lincoln  R.R. 


Maine  Central  R.R. 

Nashua  & Lowell  R.R. 

Naugatuck  R.R. 

New  Haven  & Derby  R.R. 

New  Haven  & Northampton  R.R. 
New  London  Northern  R.R. 

New  York  & New  England  R.R. 
New  York,  New  Haven  & Hart- 
ford R.R. 

Northern  R.R.  of  N.  H. 

Norwich  & Worcester  R.R. 
Ogdensburg  & Lake  Champlain 
R.R. 

Old  Colony  R.R. 

Penns3Tlvania  R.R. 

Philadelphia^  Wilmington  & Bal- 
timore R.R. 

Portland  & Ogdensburg  R.R.  of 
Maine. 

Portland  & Rochester  R.R. 
Providence  & Worcester  R.R. 
Providence,  Warren  & Bristol 
R.R. 

Springfield  & North  Eastern  R.R. 
Vermont  Valley  R.R. 

Worcester  & Nashua  R.R. 

Red  Line. 

White  Line. 

Blue  Line. 

Canada  Southern  Line. 

National  Despatch  Line. 


